When many couples purchase a home together, they often do so with the expectation that they’ll continue living in it happily together for years to come. Unfortunately, life doesn’t always pan out how we expect it, and soon-to-be-divorced couples often find themselves negotiating how to handle the shared home equity.
For this post, we’re offering a quick look at the most common types of ways that home equity is either split or handled after a divorce.
Selling the Home and Diving the Equity
This is often the cleanest solution: the family home is sold and the equity is divided equally among both parties. Dividing equity after a sale is a popular option because in addition to allowing for a fresh start, it often provides enough money for a deposit or down payment on a new spot.
Continue Residing in the Home for the Time Being
There are instances where it might make more sense to remain in the house, at least temporarily. Many separating couples who do this simply stick to their own quarters and do maintain their distance without having to deal with the headache of splitting the equity. In our experience, this solution is best kept short-term.
Have one Party Buy Out the Other One
If you want to stay in the family home with the kids, or simply like the place too much to part with it, it’s possible for you to buy out the ex and vice-versa. This often involves refinancing the mortgage so that it no longer includes the name of the person who went for the buyout.
Learn More about California Divorce Proceedings
These are the most common and straightforward ways for you to deal with home equity during a divorce. Take the time to fully explore your options before agreeing to anything with the ex! As always, we invite you to reach out to us at the Law Offices of James P. White if you have any questions about this or other matters relating to family law in CA.
Call us at at 925-271-0999 to schedule a free initial consultation with a seasoned divorce attorney in CA.